New Job Opportunity during IVA?

stonechalice

Hi all,

I have been in my IVA for over two years now, for a relatively small amount of money owed (under £20000) I have just completed my annual review. and nothing has changed.

I have since applied for, and been offered a new job with a substantial pay increase. Basically, my salary is jumping from £17000 to £30000! Obviously, I will be doing many more hours and the job will bring more responsibility and challenge. There will also be travel costs which I didn't have before ( I could cycle to work). I will now need to run a car which I've luckily been gifted but will need to run and maintain that too.

My question is, how much do I stand to lose from my pay packet with my new job? I'm currently paying back £50 per month and I was struggling with that. Obviously more money will make this easy to pay.

I'm very anxious as there is a probationary period of three months with the new job and I may not even make it. It's a challenging role. Giving up the new position to stay in a dead end job with zero progression is also not an option. Opportunities like this don't come along very often.

I find it peculiar that you're almost encouraged not to better yourself in life during an IVA, as you'll end up giving over anything extra you owe. I'm losing sleep over this!

Any help at all is appreciated. I'm willing to look at all avenues.

Thanks in advance.

TLDR; In an IVA, new job offer, more money, but how much will I have to hand over?

~Beanie~

You will need to speak to your IVA provider to find out for certain but I don't think you can almost double your salary and not expect your payment to increase.

I find it peculiar that you're almost encouraged not to better yourself in life during an IVA, as you'll end up giving over anything extra you owe. I'm losing sleep over this!

Why is it peculiar? You owe(d) £20,000 and by your own admission are receiving a substantial pay increase. You are bettering yourself but for the time being, all it means is that you will repay a bit more towards what you owe.

stonechalice

I understand this but what concerns me is that they'll take all the extra dough and will pretty much make the move to more responsibility pointless. Is there a cap on how much extra they can make you pay?

sourcrates

stonechalice wrote: »

I understand this but what concerns me is that they'll take all the extra dough and will pretty much make the move to more responsibility pointless. Is there a cap on how much extra they can make you pay?

No there is no cap.

You deduct your essential living expenses from your earnings, and what's left will go towards your debts, for the benefit of your creditors.

you will find your monthly payment will increase substantially if you take this job.
You have to remember you are insolvent, so anything above and beyond reasonable expenditure will go into the IVA.

stonechalice

There are a number of unknown factors though. My probationary period and whether I make the grade, travel costs and actual final, net pay per month to name a few. What would happen should I settle in to my new position before notifying Payplan of the change? Would they back date payments required?

Also, what would be the result of me defaulting on the IVA arrangement and are there other options for someone that ends up earning more than they anticipated? is there a get out early clause?

sourcrates

I assume your IP conducts a review every year ?

You would normally not have to declare it before your annual review took place, then your payments will either increase, decrease, or stay the same.
If your expenses have increased, then you would say so, but as a general rule if your income increases substantially, your payments will to.

Consequences of a failed IVA can be severe, your creditors can petition for your bankruptcy, if they so wished, however the increase in the bankruptcy threshold to 5k per debt, may mean that's not an option for them.

As you are two years in, it would be folly to not carry it through to completion.

stonechalice

Okay thanks a lot. Yes I get annual reviews. So are you saying I do not need to inform them of my increase until my next review?

sourcrates

stonechalice wrote: »

Okay thanks a lot. Yes I get annual reviews. So are you saying I do not need to inform them of my increase until my next review?

Good advice here :

http://www.iva.co.uk/increasing_salary_when_in_an_iva.asp

stonechalice

That's great thanks.